COVID-19: Government Support Package Italy - 28 April 2020 - EY
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COVID-19: Government Support Package Italy 28 April 2020
2 COVID-19: Government Support Package - Italy
On 17 March 2020 the Law Decree n.18, ‘Cura Italia’ or ‘Heal Italy’ was published in the
Official Gazette and became immediately effective (the Decree). The Decree will be
converted (with potential changes) into Law within 60 days from its publication.
The Decree provides for a stimulus package including tax and other measures of EUR 25
billion and public guarantees to the banking system that should generate the injection of
new liquidity of EUR 340 billion.
In addition to strengthening the public health system, the Decree introduced a number of
extraordinary measures to economically support families, employees and companies being
delivered through three main methods of intervention.
On 8 April 2020, Italy’s Law Decree n. 23, referred to as the “Liquidity Decree”, was
published in the Official Gazette and entered into force on the following day. The Liquidity
Decree will have to be converted (with potential changes) into Law within 60 days from its
publication to remain in force. The Liquidity Decree integrates and partially replaces the
economic measures introduced by the Heal Italy decree that are now expected to provide
EUR 400 billion of liquidity injection.
1 2 3
Employment & remuneration Tax & Contributions Financial support
These aims are primarily being delivered through:
► The central tax system (covering cash tax deferral and employment support)
► The benefit system for the social contribution measures
► The banking system in terms of the financing schemes approved
24 April 2020 COVID-19: Government Support Package - Italy
3 Italian Government initial responses
Cash flow measures Liquidity and financing Administration
Tax deferrals Other measures ► SME Guarantee Fund ► Deferral of tax filings (business tax,
personal tax and VAT)
For the self-employed and enterprises ► Use of forecast method to pay ► SME Moratorium
below certain turnover thresholds, FY2020 CIT advance payments ► Postponement of the financial
► Bank liquidity guaranteed by CDP
taxpayers of qualified business without penalties and interest up statements approval deadline (180
and counter-guaranteed by the
sectors and qualified areas highly to a 20% underpayment days of the end of the financial
Government for SMES and Mid-
damaged by the Covid-19 crisis: ► Enhanced tax credit for donations year as opposed to 120 days) is
Caps
in cash and in kind, made by allowed.
► Deferral of payment of VAT
individuals and non-commercial ► Moratorium for SIMEST Financing
► Suspension of activities by the
► Deferral of payment of entities aimed at financing ► CDP direct and indirect lending Italian Tax Authorities for tax
employment income and social interventions in the containment litigation, tax assessment, tax audit
security contributions and management of COVID-19 ► SACE - Guarantees /Insurance and tax liquidation.
policies (for Italian companies
► Deferral of payment of WHT on ► Possibility for companies to
exporting abroad)
employment income and social convert qualifying deferred tax
security contributions assets into tax credits (e.g. ► SIMEST (support to
disposal of NPLs) internasionalization-L.133 and
► Other tax credits similar)
Employment support Welfare
► Specific Ordinary and ► Removal of minimum income floor
Extraordinary Temporary Wage for Universal Credit
Guarantee Funds
► Uprating of Universal Credit
► Smart Working
► Expansion of eligibility for
► Dismissal Bans Statutory Sick Pay
► Extraordinary Parental Leave
► Extension of the Paid Leave
provided by Law 104/1992
24 April 2020 COVID-19: Government Support Package - Italy4 Cash flow support: Government tax deferrals –
Business Tax
This is an automatic Tax payments and filings ► WHT payments on employment For more information
deferral and no application ► Payments of WHT on employment
income and social security
contributions payments due for the Alexia Pinter
needs to be made. income and social security alexia.pinter@it.ey.com
contributions originally due on the period between 1 April and 31 May
period between 8 March and 31 March 2020 by enterprises and the self-
employed with a previous fiscal year Tel: +39 335 1229923
2020 by the self-employed and
enterprises with a previous FY (FY) turnover not higher than EUR 50
turnover up to EUR 2 million are million who experienced a turnover
deferred to 31 May 2020 (in full or in 5 reduction of at least 33% in March and
equal monthly instalments). April (compared to the same months
► A deferral of WHT and social in 2019), are deferred to 30 June
contributions due up to 30 April 2020 (in full or in five equal monthly
applies to taxpayers of qualified installments). The same deferment
business sectors (e.g. tourism, sport, applies to enterprises and the self-
entertainment, art, culture, education, employed with a previous FY turnover
transport, food, not-for-profit) WHTs higher than EUR 50 million that
on income derived to 31 May by small experienced a turnover reduction of at
businesses (turnover up to EUR least 50% in March and April
400,000), with no employment (compared to the same months in
expenses during the previous month,
2019). This deferment also applies to
are replaced by self-assessed
all enterprises and the self-employed
payments due by 31 July 2020 (in full
or in 5 equal monthly instalments).
who started their activities as of 1
April 2019, irrespective of any other
► Filings due between 8 March 2020 and
prerequisites.
31 May 2020 are postponed to 30
June 2020. The compensation
certificate (Certificazione unica) can be Practical considerations
filed by 30 April 2020 (rather than by ► This is an automatic payment holiday
31 March) with no application required.
► Payments due between 8 March and
31 May 2020 arising from a variety of Time to pay
qualifying collection deeds are
postponed to 30 June 2020. ► These payments are deferred to 31
Installments due according to certain May 2020 (in full or 5 equal monthly
Tax Amnesty Programs introduced in instalments).
the past years may be also deferred.
24 April 2020 COVID-19: Government Support Package - Italy5 Cash flow support: Government tax deferrals – VAT
This is an automatic Tax payments and filings ► The suspended VAT payments mentioned ► The self-employed and enterprises can
above are due by 31 May 2020 (in full or postpone the payment of stamp duties
deferral and no application VAT payments up to 30 March 2020 in 5 equal monthly instalments).
► linked to electronic invoicing without
needs to be made. are suspended for taxpayers penalties and interest as follows: (i)
► VAT payments due for the period
operating in sectors particularly hit by the stamp duty due for the first
between 1 April and 31 May 2020 by
the COVID-19 crisis (e.g. tourism, quarter of FY 2020 can be paid within
enterprises and the self-employed
sport, entertainment, art, culture, the deadline referred to the second
with a previous fiscal year (FY)
education, transport, food, no-profit). quarter if the tax due is lower than
turnover not higher than EUR 50
► VAT payments from 8 March to 31 million who experienced a turnover EUR 250; and (ii) the stamp duty due
March 2020 are suspended for reduction of at least 33% in March and for the first and second quarters of FY
taxpayers with a previous FY turnover April (compared to the same months 2020 can be paid within the deadline
up to EUR 2 million and who are in 2019), are deferred to 30 June referred to the third quarter if the
established in Italy or have therein a 2020 (in full or in five equal monthly cumulative tax due is lower than
fixed establishment (including, installments). Enterprises and the self- EUR250.
irrespective of any turnover, those employed located in specific areas
located in specific areas (e.g., (e.g., Bergamo, Cremona, Lodi and Practical considerations
Bergamo, Cremona, Lodi and Piacenza provinces) can benefit from
Piacenza provinces). such deferment even if their previous ► This is an automatic payment holiday
FY turnover was higher than EUR 50 with no application required.
► VAT fulfillments due in the period 8
million. The same deferment applies The VAT payments and filings
March - 31 May 2020 are postponed ►
to enterprises and the self-employed deferment should not apply to Italian
to 30 June 2020 for taxpayers who
with a previous FY turnover higher VAT registrations of non-established
are established in Italy or have therein
than EUR50 million that experienced a
a fixed establishment. The deadline taxable persons.
turnover reduction of at least 50% in
for the filing of the Annual VAT return
March and April (compared to the
of 30 April 2020 is postponed to 30
same months in 2019). This For more information
June 2020.
deferment also applies to all
► Payments due between 8 March and enterprises and the self-employed who Nicoletta Mazzitelli
31 May 2020 arising from a variety of started their activities as of 1 April Nicoletta.Mazzitelli@it.ey.com
qualifying collection deeds are 2019, irrespective of any other
postponed to 30 June 2020. prerequisites.
Tel: +39 3357527026
Installments due according to certain
Tax Amnesty Programs introduced in
the past years may be also deferred.
24 April 2020 COVID-19: Government Support Package - Italy6 Cash flow support: Government tax deferrals –
Personal Tax
This is an automatic Tax payments and filings Practical considerations For more information
deferral and no application ► Payment of WHT on employment ► This is an automatic payment holiday Paolo Santarelli
needs to be made. income and social security with no application required. paolo.santarelli@it.ey.com
contributions due on the period
► Companies are evaluating the
between 8 March and 31 March 2020 Tel: +39 335 1233151
by the self-employed and enterprises possibility to adopt additional
with a previous FY turnover up to economic measures in the form of
EUR 2 million is deferred to 31 May bonus and salary sacrifice.
2020.
► WHT on income derived to 31 March
by professionals with turnover up to
EUR 400,000, with no employment
expenses during February 2020, are
replaced by self-assessed payments.
► Filings due between 8 March 2020
and 31 May 2020 are postponed to
30 June 2020.
► Payments due between 8 March and
31 May 2020 arising from a variety
of qualifying collection deeds are
postponed to 30 June 2020.
Instalments due according to certain
Tax Amnesty Programs introduced in
the past years may be also deferred.
Time to pay
► Both payment of WHT on
employment income / social security
contributions and the self-assessed
payments mentioned above are due
by 31 May 2020 (in full or in 5 equal
monthly instalments).
24 April 2020 COVID-19: Government Support Package - Italy7 Cash flow support: Cash tax management (1/2)
There are other tax related Maximising cash tax value Practical considerations For more information
measures, which are not ► Banks, other financial institutions and ► Implementing instructions need to be Alexia Pinter
specific to COVID-19, to other companies disposing of third issued for the sanitization tax credit. alexia.pinter@it.ey.com
manage liquidity. party receivables older than 90 days by
31 December 2020 can convert into Tel: +39 335 1229923
tax credits existing deferred tax assets
(including unrecognised) associated
with: (i) tax losses carried forward; and
(ii) excess notional interest deduction
carried forward. Such tax credits can be
used to offset other taxes, transferred
to other parties or refunded.
► We recommend reassessing prior
period tax deductions/reliefs to ensure
the optimal position has been taken.
Past tax returns can be amended
before the expiry of the applicable
statute of limitation to claim any
identified additional deductions/reliefs.
► A tax credit of 50% of the cost for
sanitising the environment, work tools
and the purchase of COVID-19 personal
protection equipment (PPE) is available
up to a maximum of EUR 20,000
expenses.
► A tax credit of 60% of the rental fee
paid in March 2020 for retail spaces is
available to enterprises other than
those running “essential activities”.
24 April 2020 COVID-19: Government Support Package - Italy8 Cash flow support: Cash tax management (2/2)
There are other tax related Prepayment of cash taxes on For more information
measures, which are not account Alexia Pinter
specific to COVID-19, to ► In case companies rely on the forecast alexia.pinter@it.ey.com
manage liquidity. method to pay FY2020 CIT (IRES and
IRAP) advance payments (vs the Tel: +39 335 1229923
traditional historical method based on
previous FY results), no penalties and
interest apply up to a 20%
underpayment
Deferral of cash tax payments Practical considerations
► VAT balancing payments can be ► The deferral of cash tax payments
postponed to the following month by was already present in the Italian
paying an additional 0.4% for each rules and was not introduced by the
month of delay (up to three months, or COVID-19 decree. However it should
up to four months paying an additional be considered in order to efficiently
0.4% on the overall amount due). manage taxpayers’ cash positions.
► Tax payments can be postponed by
paying the related penalties (e.g. 1.67%
if paid within 90 days, 1.5% if paid
within 30 days, 0.1% for each day of
delay if paid within 15 days).
► CIT and Italian tax on productive
activities payments can be postponed
to the following month by paying an
additional 0.4%.
Tax Refunds Practical considerations For more information
► Quarterly or annual VAT refund claims ► This measure was already present in Nicoletta Mazzitelli
can be filed, depending on the kind of the Italian rules and was not Nicoletta.Mazzitelli@it.ey.com
transactions performed. introduced by the COVID-19 decree. nic
However it should be considered in Tel: +39 335 7527026
order to efficiently manage
taxpayers’ cash positions. Although
specific filings are required.
24 April 2020 COVID-19: Government Support Package - Italy9 Employment Law support: Dismissal Ban
In order to safeguard Dismissal ban Practicalities For more information
occupational levels and not The Decree prohibits dismissals for ► Particular consideration is required Stefania Radoccia
to frustrate public economic economic reasons (both on a collective as to which workers are covered by
Stefania.Radoccia@it.ey.com
resources, the Decree and individual basis) for a period of 60 the provision (it is not clear whether
days from the date of entry into force of this applies to executives). Tel: +39 335 7454259
provides for a temporary the Decree.
ban on dismissal for ► Due legal assessment will be
In this regard, the initiation of mobility required to justify each dismissal
justified objective reason
and staff reduction procedures pursuant (e.g. failing in during probation
(both collective and to Law No. 223 of 23 July 1991 is period, disciplinary dismissal, etc.)
individual). precluded for 60 days and during the and should be evaluated on a case by
same period the pending procedures case basis.
initiated after the date of 23 February
2020 are suspended.
Until the expiry of that period, the
employer, irrespective of the number of
employees, may not terminate the
contract for justified objective reasons
within the meaning of Article 3 of Law
No. 604 of 15 July 1966.
28 April 2020 COVID-19: Government Support Package - Italy10 Employment Law support: Temporary Wage
Guarantee Funds
In order to safeguard Temporary wage support Practicalities For more information
occupational levels and not ► With the Law Decrees 9/2020 and ► For contributions starting on 23 Stefania Radoccia
to frustrate public economic 17/2020, special temporary wage February 2020 the maximum period
Stefania.Radoccia@it.ey.com
resources, the Decree also guarantee funds connected to the of relief is up to 9 weeks, with a final
provides special temporary health emergency have been end date of August 2020. Tel: +39 335 7454259
implemented by the Italian
wage support. Government in order to mitigate
► The Red-Zone of Italy can benefit
from longer period of wage
potential drops in production and to
subsidies, and covers 80% of unpaid
integrate the salaries of employees
wages, up to circa 1,100
either with reduced working hours or
EUR/month.
total suspension of working activity.
► The use of temporary wage
► The beneficiaries of the treatments
guarantee funds shall be assessed
are persons employed as at 23
also evaluating all the possible
February 2020 and no minimum
alternative methods for managing
length of service is required.
the employment relationship,
► In the case of trade union provided by law and collective
consultation, the Decrees provides bargaining agreements (including
for a simplified procedure which can the utilisation of smart working,
also take place through electronic holidays, permits, leave, etc.) that
means. allow the suspension or the
reduction of work.
28 April 2020 COVID-19: Government Support Package - Italy11 Employment Law support: Other measures
Additional measures Other Measures For more information
announced to support ► Additional parental leave has been Stefania Radoccia
workers and companies to granted for private sector employees
Stefania.Radoccia@it.ey.com
protect work and income and for the self-employed workers
enrolled in the INPS’s social security Tel: +39 335 7454259
specific accounts, parents of children
aged under 12 years or of disabled
children. The parental leave provides
employee the option to refrain from
work for a continuous or split period
of 15 days. Where an employee
utilises this parental leave they are
entitled to receive a payment equal
to 50 per cent of their salary.
► An additional 12 days of paid leave
can be taken between March and
April 2020 where additional care is
required for disabled family
members, pursuant to Law
104/1992.
28 April 2020 COVID-19: Government Support Package - Italy12 Tax litigation and other correspondence with the
Italian tax authorities
Tax litigation and other Suspension of the terms for tax For more information
correspondence is currently litigation Maria Antonietta Biscozzi
suspended. ► The ordinary terms for tax audit, tax Amaria-antonietta.biscozzi@it.ey.com
assessment, tax collection and tax
litigation are suspended from 8 March Tel: +39 335 1229318
2020 to 31 May 2020.
► Tax court hearings are postponed to a
date after 11 May 2020 and the terms
for filing appeals before tax courts of
first instance and other procedures are
suspended until 11 May 2020.
Suspension for other Practical considerations For more information
correspondence with the Italian ► The terms of reply for all the Maria Antonietta Biscozzi
Tax Authorities requests filed along the suspension Amaria-antonietta.biscozzi@it.ey.com
► The suspension mentioned above period will start again from the last
applies also to: (1) the ordinary terms day of the suspension window. Tel: +39 335 1229318
for the Tax Authorities to reply to ruling
requests, and to the filing of
supplementary documentation; (2) the
reply to the admission request to the
cooperative compliance regime; (3) the
international ruling procedure; (4)
transfer pricing downward adjustment
procedure; (5) patent box procedures.
24 April 2020 COVID-19: Government Support Package - Italy13 Other administrative measures
The Decree provides also Regulations and Filings Practical considerations For more information
for non-tax related ► Specific provisions were introduced ► Despite the decree making express Alexia Pinter
measures. allowing companies to call ordinary reference only to the shareholders alexia.pinter@it.ey.com
shareholder meetings to approve the meetings, the doctrine currently
2019 financial statements within 180 considers these provisions as Tel: +39 335 1229923
days of the end of the financial year (as applicable to the meetings of the
opposed to 120 days). board of directors as well.
► The Decree generally allows all ► To date there has been no official
members to attend the shareholder communication from the Italian Tax
meetings by way of Authorities on the impact of virtual
telecommunications, also in exception meetings (as opposed to physical
to the provisions of the by-laws. presence) to tax residency.
24 April 2020 COVID-19: Government Support Package - Italy14 Liquidity and financing support
The Italian Government will Who is eligible? What does it cover? Practical considerations
provide for temporary ► (1) SACE Guarantees: ► (1) SACE Guarantees: ► (1) SACE Guarantees:
liquidity support to Italian Italian large companies (different
a) 90% of the amount with regard to Euro 200bn amount.
companies either through: from banks and credit institutions),
beneficiaries with no more than 5
SMEs (including self-employed Admitted beneficiaries are Italian
(i) guarantees granted by thousand employees in Italy and a
workers and professionals) companies that:
turnover (also achieved outside
SACE S.p.A (the “SACE (1-BIS) Central SMEs Guarantee Italy) up to Euro 1.5 billion;
► (i) as of 31 December 2019 were
Guarantees”) over loans Fund: SMEs, companies different not considered as being “in
(until 31.12.2020); b) 80% of the amount with regard to
from SMEs but having up to 499 difficulty” (as defined pursuant
beneficiaries with more than 5
employees and in certain limited to the European Regulation);
(ii) guarantees granted by cases individuals.
thousand employees in Italy or a
and
Fondo Centrale di Garanzia turnover (also achieved outside
► (2) SME moratorium for current Italy) between Euro 1.5 and Euro 5 (ii) as of 29 February 2020 did not
delle PMI (the “Central loans billion; and have past due exposures
SMEs Guarantee Fund” towards the bank system;
until 31.1.2020) ; or ► (3) SMEs and Mid-cap entities having c) 70 % of the amount with regard to
several undertakings are
suffered a material reduction in Beneficiaries with a turnover (also
conditions precedent for the
(iii) several suspension and turnover and falling into specific achieved outside Italy) over Euro 5
granting of the Guarantee; loan
moratorium schemes business sector particularly affected billion. The aforesaid percentages
agreements must have a
by COVID may also be increased by a MEF
granted to certain SMEs / Decree.
maturity of less than 6 years;
mid-cap / eligible entities ► (4) Moratorium in respect of current SACE Guarantee amount
(generally until SIMEST financing. ► (1-BIS) Central SMEs Guarantee increases (from 25b to 200bp
Fund: per year) depending on the
30.09.2020). nature of the borrower and
a) 100% for loans of up to Eur 25.000;
The eligible entities are maturity of the relevant
b) 90% for loans up to Eur 800.000, guaranteed loan. The amount
mainly those (i) having for companies with revenues of up of the loan is linked to specific
positions not classified by to Eur 3.2 m. Such percentage may criteria (such as the amount of
the banks as "bad debts" or also be increased up to 100% with income, cost of personnel as
"probable defaults" or (ii) the counter-guarantee of Confidi; the case may be). Use of
not falling within the notion proceeds is very limited to
c) in the other cases 90% of the loans
specific purposes (not for
of "firm in difficulty" with an overall amount up to Eur 5
refinancing).
pursuant to art. 2, point 18 m;
of Regulation (EU) no.
651/2014
28 April 2020 COVID-19: EMEIA EY Government Support Package15 Liquidity and financing support
The Italian Government will Who is eligible? What does it cover? Practical considerations
provide for temporary d) the renegotiation of the debt of the ➢ (1-BIS) Central SMEs Guarantee
liquidity support to Italian beneficiary can also benefit from a Fund:
companies either through: direct guarantee of 80% or the
Maximum of EURO 5M per
reinsurance of 90%, provided that
(i) guarantees granted by company.
the new loan provides for the
SACE S.p.A (the “SACE disbursement of additional credit of Admitted beneficiaries that:
Guarantees”) over loans at least 10% of the residual debt
(i) after 31 December 2019,
(until 31.12.2020); amount;
have been admitted to the
e) extension of the duration of the arrangement procedure on a
(ii) guarantees granted by guarantee in the event of going concern basis
Fondo Centrale di Garanzia suspension of the amortization (pursuant to article 186-bis
delle PMI (the “Central instalments/ extension of the of the Bankruptcy Law), or
SMEs Guarantee Fund” maturity of the loan; have been entered into
until 31.1.2020) ; or restructuring agreements
f) financing transactions already
(pursuant to article 182-bis
executed by the lender no later than
(iii) several suspension and 3 months after the date of
of the Bankruptcy Law) or
moratorium schemes have been submitted a
submission of the request and, in
reorganization plan
granted to certain SMEs / any case, after 31 January 2020.
(pursuant to article 67 of the
mid-cap / eligible entities ► (2) SME moratorium is granted up to Bankruptcy Law). In any
(generally until 30 September 2020 in respect of case, beneficiaries with
30.09.2020). loans expiring within such a date, exposures classified as "non-
and in respect of the entire performing" are excluded.
The eligible entities are installment or the sole principal for Depending on either the
mainly those (i) having each installment due for payment nature of the borrower or
positions not classified by within such a date. the characteristics of the
the banks as "bad debts" or guaranteed operations, the
► (3) The liquidity support is provided
Guarantee may cover
"probable defaults" or (ii) by the bank system, supported by a
between 80% up to 90% of
not falling within the notion guarantee to be provided by CDP (up
the relevant amount. No
to 80%) and counter-guaranteed by
of "firm in difficulty" the Italian Government (up to 80%).
limitations on use of
pursuant to art. 2, point 18 proceeds in general.
of Regulation (EU) no.
651/2014
28 April 2020 COVID-19: EMEIA EY Government Support Package16 Liquidity and financing support
The Italian Government will Who is eligible? What does it cover? Practical considerations
provide for temporary Such approach will boost the ➢ (2) Self-certificates should be
liquidity support to Italian financing capacity, given that the issued by the SMEs to declare
companies either through: credit risk is apportioned mainly at their shortage of liquidity due the
Government level, and residually at COVD breakout. The moratorium
(i) guarantees granted by the bank and CDP level. is assisted by 33% guaranteed of
SACE S.p.A (the “SACE ➢ (4) Financing granted by SIMEST
Fondo di Garanzia (as above)
Guarantees”) over loans upon request by the company to
(Fondo 394) may benefit of the
(until 31.12.2020); the bank.
suspension up to 12 months – until
31 December 2020 – in respect of ➢ (3) Implementation not yet
(ii) guarantees granted by bullet refund or periodical approved – currently pending
Fondo Centrale di Garanzia repayments. identification of eligibility
delle PMI (the “Central conditions.
SMEs Guarantee Fund” ➢ (4) (i) 6 month deferment to
until 31.1.2020) ; or report actual use of funds after
draw down and 6 month
(iii) several suspension and postponement of both grace
moratorium schemes period and amortization plan; (ii)
granted to certain SMEs / Cancelation of 2% penalty in case
mid-cap / eligible entities of no drawn down of committed
(generally until funds (iii) Moratorium on both
capital and interests due until end
30.09.2020). of 2020, which will be postponed
The eligible entities are starting from January 2021
mainly those (i) having
positions not classified by For more information
the banks as "bad debts" or
Massimiliano.Bianchi@it.ey.com
"probable defaults" or (ii)
not falling within the notion (+39 3384617522)
of "firm in difficulty" Giovanni.Grandini@it.ey.com
pursuant to art. 2, point 18 (+39 3487932618)
of Regulation (EU) no.
651/2014
28 April 2020 COVID-19: EMEIA EY Government Support Package17 Liquidity and financing support
The Italian Government will Who is eligible? What does it cover? Practical considerations
provide for temporary ► (5) SME and MID-Cap ► (5) Indirect Lending – Liquidity ► (5) 3 Plafonds: (i) PMI: tot. EUR 6.0bn addressed to
liquidity support to Italian companies : CDP provides liquidity to SMEs with less than 250 employees (regardless
companies either through: banks at low interest rates as revenues and total assets value); (ii) MID: tot. EUR
► (6) All companies
a measure to encourage 3.5bn for Mid-cap companies (250-3,000
(i) guarantees granted by ► (7) All companies corporates to access credit. employees); (iii) “Reti e Filiere”: tot. EUR 0.5bn for
SACE S.p.A (the “SACE ► (8) SMEs and large ones
This program is called SMEs and Mid-cap companies which are part of a
Guarantees”) over loans “Piattaforma Imprese” and network of companies or in a formally
consists of 3 ceilings aimed at contractualised supply-chain
(until 31.12.2020);
financing CapeEx plans and
► (6) (i) CDP’s stand-alone minimum ticket is around
(ii) guarantees granted by Working Capital needs.
EUR 8-10m, vis-à-vis a minimum overall financing of
Fondo Centrale di Garanzia ► (6) Direct Lending - CDP can EUR 20m together with at least other 2-3 banks; (ii)
delle PMI (the “Central directly finance (both direct Proceeds to be used for CapEx or corporate
SMEs Guarantee Fund” lending and bonds), although acquisitions (usually not for refinancing purposes);
not as sole-lender but only as (iii) Usually amortising repayment schedule (with final
until 31.1.2020) ; or
co-lender with other banks balloon), helping to extend maturity / average life of
(iii) several suspension and (pool). the overall medium / long term financing
moratorium schemes ► (7) SACE - Guarantees / ► (7) (i) CDP’s stand-alone minimum ticket is around
granted to certain SMEs / Insurance policies (for Italian EUR 8-10m, vis-à-vis a minimum overall financing of
mid-cap / eligible entities companies exporting abroad) : EUR 20m together with at least other 2-3 banks: (ii)
CDP can directly finance (both Proceeds to be used for CapEx or corporate
(generally until
direct lending and bonds), acquisitions (usually not for refinancing purposes);
30.09.2020). although not as sole-lender (iii) Usually amortising repayment schedule (with final
The eligible entities are but only as co-lender with balloon), helping to extend maturity /average life of
other banks (pool). the overall medium / long term financing.
mainly those (i) having
positions not classified by ► (8) SIMEST (support to ► (8) These loans allow companies to develop projects
internationalization and for growth on international markets by financing at a
the banks as "bad debts" or
similar activities) - New subsidized rate (currently 0.069% per annum) the
"probable defaults" or (ii) resources to “Fondo 394” up expenses for: (i) participating in international fairs,
not falling within the notion to EUR 400m to support (ii) carrying out feasibility studies, (iii) open a first
of "firm in difficulty" Italian companies going commercial structure, (iv) obtain - in the case of an
pursuant to art. 2, point 18 abroad. exporting company - medium-long term resources to
of Regulation (EU) no. enhance its export capacity.
651/2014
28 April 2020 COVID-19: EMEIA EY Government Support Package18 Liquidity and financing support
The Italian Government will Who is eligible? What does it cover? Practical considerations
provide for temporary ► (9) Qualifying MID-Cap ► (9) Special loans may be ► (9) The applicant must have (i) an annual turnover
liquidity support to Italian and large companies granted directly by CDP higher than Eur 50m and must (ii) demonstrate to
companies either through: preferably in co-financing with have suffered a damage from the COVID-19
the banking system with CDP emergency resulting in at least a 10% reduction in
(i) guarantees granted by share between 5 and 50 m turnover compared to the corresponding period of
SACE S.p.A (the “SACE EUR and duration up to 18 the previous FY. The economic conditions of the loan
Guarantees”) over loans months, in order to support comply with market conditions, based on the rating
the financial needs connected class of the beneficiary and duration.
(until 31.12.2020);
with temporary liquidity or
(ii) guarantees granted by working capital needs . This
Fondo Centrale di Garanzia tool is not aimed at SMEs.
Only Mid - Large companies
delle PMI (the “Central hit by the Covid-19 crisis with
SMEs Guarantee Fund” an annual turnover higher
until 31.1.2020) ; or than EUR 50m may qualify.
This measure is intended to
(iii) several suspension and finance a variety of
moratorium schemes investment plans.
granted to certain SMEs /
mid-cap / eligible entities
(generally until
30.09.2020).
The eligible entities are
mainly those (i) having
positions not classified by
the banks as "bad debts" or
"probable defaults" or (ii)
not falling within the notion
of "firm in difficulty"
pursuant to art. 2, point 18
of Regulation (EU) no.
651/2014
28 April 2020 COVID-19: EMEIA EY Government Support Package19 Global EY COVID-19 Stimulus Response Tracker
Our tracker provides a Key jurisdictions covered by the Response Tracker include:
snapshot of the policy
changes that have been ► Australia ► Denmark ► Malaysia ► Sweden
announced in jurisdictions
► Austria ► France ► New Zealand ► Switzerland
around the world in
response to the COVID-19 ► Belgium ► Germany ► Norway ► Taiwan
crisis. ► Brazil ► Greece ► Puerto Rico ► Thailand
Policy changes across the ► Canada ► Hong Kong ► Singapore ► Ukraine
globe are being proposed
and implemented on a daily ► China ► Indonesia ► Slovak Republic ► United Kingdom
basis. ► Colombia ► Italy ► Slovenia ► United States
The document will be ► Cyprus ► Japan ► South Korea
updated on an ongoing
basis but not all entries will ► Czech Republic ► Luxembourg ► Spain
necessarily be up to date as
the process moves forward.
To download the latest Response Tracker visit:
ey.com/en_us/tax/how-covid-19-is-causing-
governments-to-adopt-economic-stimulus--
24 April 2020 COVID-19: Government Support Package - ItalyContacts
20
Stefania Radoccia Davide Bergami Alexia Pinter Maria Antonietta Biscozzi
Partner – Employment Law - EY Tax Partner – Tax & Law Markets Partner – Business Tax Services Partner – Tax Controversy
& Law Italy Leader
Stefania.Radoccia@it.ey.com davide.bergami@it.ey.com alexia.pinter@it.ey.com maria.antonietta.biscozzi@it.ey.com
+39 335 7454259m +39 3351229309 +39 335 1229923 +39 3351229318
Nicoletta Mazzitelli Marco Cristoforoni Giusy Bochicchio Giovanni Grandini
Partner – Indirect Tax Partner – Private Client Services Partner – Transfer Pricing ED - Corporate Debt Advisory
Giovanni.Grandini@it.ey.com
nicoletta.mazzitelli@it.ey.com Marco.cristoforoni@it.ey.com Giusy.bochicchio@it.ey.com +39 3487932618
+39 3357527026 +39 335 1229736 +39 335 6022681
Paolo Santarelli Giovanni Lettieri Maria Teresa Iannella
Partner – People Advisory Services Partner – Business Tax Advisory Partner – Labour Law
paolo.santarelli@it.ey.com Giovanni.Lettieri@it.ey.com Maria-teresa.iannella@it.ey.com
Tel: +39 335 1233151
+39 335 5651957 +39 334 6550853
24 April 2020 COVID-19: Government Support Package - ItalyEY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. For more information about our organization please visit ey.com. © 2020 EYGM Limited. All Rights Reserved. ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. ey.com
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